The Republic of Belarus received another tranche from the Eurasian Fund for Stabilization and Development (EFSD) at the end of April, marking the third tranche received by the country thus far.
The EFSD is managed by the Eurasian Development Bank (EDB), which was designated by the EFSD to receive and disburse the total of $2 billion.
The program was modified so that the Belarusians would be able to meet three targets, including adopting a strategy to improve state-owned institution management, adding social support to unemployed citizens and approval to procedures for managing unstable enterprises with trusts, according to an announcement. The overarching goal of the reforms was to improve the management of state assets while lessening the impact the reforms had on citizens.
Proposed modifications are included in a letter of intent from the government and National Bank of Belarus and includes adoption of additional corporate codes, creation of committees and independent supervisory directors. Additionally, the modifications to the fifth through seventh tranches will optimize government assets by transferring some state-owned entities to community ownership.
Belarus was already exempted from compliance that restricted unrelated government borrowing to 75 percent of the amount necessary for repayment, or that additional indebtedness be used solely to bolster gross international reserves. Government borrowing in the nation totals 103.4 percent of the amount to be repaid in January-August 2016.
The EFSD council has also requested that the EDB work with authorities in Belarus to achieve the program goals, including continuing to improve management of state-owned enterprises, which are expected to result in long-term sustainable growth for the country.